Shares of Verano Holdings, a leading cannabis company, saw a decline following a lawsuit filed against Attorney General Merrick Garland and others. The lawsuit aims to strike down federal restrictions on marijuana.
Decline in Stock Value
During midday trading, Verano Holdings' stock experienced a 7% drop, bringing it down to $3.27. However, despite this setback, the shares have still managed to maintain a 6% increase year-to-date.
Lawsuit Allegations and Participants
Verano Holdings, along with two other private cannabis companies, joined forces with Treevit CEO Gyasi Sellers to file the lawsuit. The complaint asserts that the federal criminalization of cannabis in 38 states where it is already regulated and legal is both unconstitutional and unfair, particularly to small businesses.
Legal Representation and Strategy
Impact on Other Cannabis Companies
Although Verano Holdings experienced a noticeable decline in share value, other major U.S. cannabis companies like Curaleaf and Green Thumb Industries witnessed smaller drops on Friday. The AdvisorShares Pure U.S. Cannabis ETF also took a hit, declining by 3.5% to $5.43.